Rehabilitation Grant and Compensation under Uttar Pradesh Zamindari Abolition

and Land Reforms Act

Chapter 4(Section 65-84) of the Uttar Pradesh Zamindari Abolition and Land Reform
Act, contains all the provisions regarding compensation, and Chapter 5 (Section 85-105)
contains all the provisions regarding rehabilitation grant. The U.P Zamindari Act and
Land Reform Act changed the land law and abolished the zamindari system. All the
zamindars were stripped off all their land rights, and all their estates were taken away by
the state government. The state government gave all the zamindars or intermediaries
compensation and rehabilitation grant in return of the land taken by the government. The
aim of giving compensation is to compensate the zamindars who had to give up their
property. Rehabilitation grant was introduced to give former intermediaries an
opportunity to find a new livelihood and find other alternatives for rehabilitation.

Application for rehabilitation grant

According to Section 79, an intermediary entitled to be paid the grant may within three
years from the date it has become payable under Section 74 or within three years from the
date of commencement of the Uttar Pradesh Land Reforms (Amendment) Act, 1958,
whichever maybe later, apply in writing to the Rehabilitation Grants Officer for
determination and payment of the grant.

Determination of the amount of rehabilitation grant

According to Section 97, after the statement under Section 92 has been prepared, the
Rehabilitation Grants Officer shall determine the amount payable as rehabilitation grant
to each intermediary. According to Section 98, the amount of the grant is subject to such
marginal adjustments as may be prescribed. The amount payable as rehabilitation grant to
an intermediary shall, except in the case of waqf, trust or endowment, be such multiple of
the net assets mentioned in the statement prepared under Section 92 as may be applicable
in accordance with the table given in Schedule I.

Appeal for dismissing the application

According to Section 101, an appeal shall lie to the District Judge from any order of the
Rehabilitation Grants Officer dismissing an application under Section 85 or disposing of
an objection under Section 88, or from any order under Sections 90, 98, 99, 100-A or
100-B.

Difference between compensation and Rehabilitation Grant

There are differences between compensation and rehabilitation grant; they can be
summarized as follows:

1. Rehabilitation Grant is only paid to a Zamindar or intermediary, whereas

compensation is given to intermediaries and thekedar both.
2. The grant amount, when given rehabilitation grant, can range between one to
twenty times the net assets of the zamindar whereas compensation is given at
a fixed rate of eight times of the net assets of the zamindar or thekedar.
3. The application process is compulsory to receive rehabilitation grant, but it is
not compulsory in case of payment of compensation.
4. Rehabilitation grant is given from the date on which the amount of
compensation is set. Compensation is given from the date of vesting, except
when given to waqf, trust or an endowment.
5. There is no interim rehabilitation grant, but interim compensation is given.
6. While deciding the amount of rehabilitation, transfer of land by sale or gift is
not taken into consideration while when deciding on compensation, transfer of
land through sale or gift is to be taken into consideration.
7. Arrears of land revenue and specific government dues cannot be recovered
from rehabilitation grant; they only to be recovered through compensation.
 8. “Zamindari Abolition Rehabilitation Grant Bonds” are not interesting bearing
bonds whereas “Zamindari Abolition compensation Bonds” are given at an
interest rate of 2.5% per annum from the date of vesting.
9. In case of compensation, the first appeal lies from the order of the
compensation officer to the district judge and the second appeal lies to the
High Court. Whereas an appeal lies to the district judge on order from the
rehabilitation grant officer. For rehabilitation grant, there is no second appeal
only revision petition is allowed in the High Court.

The Uttar Pradesh Zamindari Abolition and Land Reform Act 1950, was signed by the
President on 24th January 1951.
The vesting order for the Act was issued on 1st July 1952. From the date of vesting, all
the titles, rights and interests of all intermediaries were terminated and ceased. But an
intermediary who cultivated his land as a share-cropped or self-cultivated the land was
given the ownership of the land.

The Zamindari Abolition Act did not give the right of resumption, nor did it provide a
ceiling on the area a Zamindar can use for personal cultivation. Therefore, all the
occupants of the land, Zamindars and secured or unsecured tenants, were to continue in
possession of the land they were cultivating at the time the reforms were enacted.
The Act can be divided into two parts. The first part contains chapters 1 to 6, and the
second part contains chapter 6 to 12. The Act has seven schedules and 344 sections. All
the zamindars were stripped off all their land rights, and all their estates were taken away
by the state government. The state government gave all the zamindars or intermediaries
compensation and rehabilitation grant in return of the land taken by the government.
The aim of giving compensation is to compensate the zamindars who had to give up their
property. Rehabilitation grant was introduced to give former intermediaries an
opportunity to find a new livelihood and find other alternatives for rehabilitation.